Everyone in Arizona knows the state faces an immediate operating budget deficit of nearly $1 billion, and a long-range or “structural” deficit of $3 billion to $4 billion. The situation is so dire that Gov. Jan Brewer has asked state agencies to deliver proposals for scaling back by yet another 15 to 20 percent in mid-year spending cuts. So what should those state agencies be considering in proposals for the next budget year, which are due in the governor’s office by Thursday?

The Arizona Board of Regents has decided to demand more money, a lot more money, as in a 46 percent increase.

At the Board of Regents monthly meeting last week (held in Flagstaff), there was widespread frustration with the state budget situation and how it is affecting the state’s three public universities. The university presidents point out the state hasn’t raised funding to match the record growth in student enrollment, and hasn’t provided enough cash for building construction or major maintenance.

The Board of Regents’ staff had prepared an agenda item that offered to raise state university funding from $1.04 billion to $1.36 billion*, or a 15 percent increase. That alone seems rather lofty.

But a few regents asked the three presidents to hastily come up with a new proposal that reflects the “true cost” of public university education. Arizona State University President Michael Crow clearly was eager to do so. He boldly accused state lawmakers of violating the state constitution because they haven’t raised taxes to give his school more money, as you can see in the video below from the regents’ meeting:

The new budget proposal would raise state funding for universities to $1.459 billion or a $459.1 million increase. For about 30 minutes, the regents debated whether to send both budget choices to the governor’s office, or just the massively more expensive option, as board President Ernest Calderon explained:

The board deadlocked at 5-5 on the motion that would have sent both budget choices to Brewer and lawmakers. Then, the board voted 7-3 to submit the 46 percent increase.

If you watch the whole video, you will see that regent Fred Boice of Tucson is the only person who injects any sort of common sense:

“I think, consciously or subconsciously, we have taken a step into a different world. And that for us to go to (lawmakers) and hand them a bill for $(459) million, knowing full well they can’t balance their current budget, that is a bit inappropriate.”

It’s too bad Boice’s comments came after the last vote.

Most of the discussion on the video suggests the regents are taking a brave, new stance in defense of university education. But, in fact, the universities and board regents have a recent track record of being completely unrealistic in budget matters.

In the spring of 2008, the universities convinced then-Gov. Janet Napolitano to push for $1.4 billion in new building construction, even though the details of the state’s budget woes already were starting to emerge. The universities’ pitch was the construction would be a state economic stimulus, as if that somehow would be popular in this politically conservative state.

The Legislature reluctantly went along with last year’s request, and then delayed the funding because of the growing budget problems.* This year’s proposal will be laughed right out the door.

But this is no laughing matter. Pushing for a showdown with such absurd budget numbers will seriously damage the Board of Regents’ credibility with lawmakers, while creating false hope among the thousands of university employees who are far more likely to be laid off in the coming months.

*NOTE: This post has been updated to reflect the fact that the Legislature approved a version of last year’s university construction stimulus plan, formally known as SPEED. The original post incorrectly said the Legislature rejected it. As updated, the post explains the plan was later delayed because of budget issues. Also, a decimal error in one of the proposed budget numbers has been corrected.